Strategist: Soft landing of U.S. economy will help cryptocurrencies rebound further

Zach Pandl, a former Goldman Sachs strategist and managing director of new research at cryptocurrency fund provider Grayscale, said there may be room for a crypto market rally this year if the U.S. economy can achieve a soft landing.

A scenario of low inflation and steady growth could allow the Fed to lower real interest rates to fuel a rally in risk assets, including cryptocurrencies, Pandl wrote in a note.

But “if the Federal Reserve decides to raise real interest rates further, or if monetary tightening so far pushes the economy into recession, the rally in cryptocurrencies could take a short-term pause”.